Tesla has warned that it and other major US exporters could face retaliatory tariffs in response to President Donald Trump’s aggressive trade policies. The automaker’s concerns were outlined in a letter to the US Trade Representative’s Office, where it urged the administration to avoid actions that could inadvertently harm American businesses.The letter, which was posted on the USTR website, highlights the risks of trade disputes, stating, “US exporters are inherently exposed to disproportionate impacts when other countries respond to US trade actions.” Tesla referenced past conflicts that resulted in higher tariffs on electric vehicles in affected countries and emphasised the need for a measured approach to trade restrictions.
Tesla’s warning is particularly noteworthy given CEO Elon Musk’s close ties to Trump. Musk, who leads the White House’s Department of Government Efficiency, has played a key role in the administration’s efforts to downsize the federal government. Despite this, Tesla is urging caution, stressing that even with efforts to localise supply chains, some auto parts and components remain difficult or impossible to source within the US.
Trump is expected to decide on new tariffs for vehicles and auto parts as early as April. In its letter, Tesla advocated for a “phased approach” that would give companies time to adjust supply chains and ensure compliance with new trade regulations.Trade concerns extend beyond Tesla, with Autos Drive America—representing major foreign automakers such as Toyota, Volkswagen, BMW, Honda, and Hyundai—also cautioning against broad-based tariffs. The group warned that such measures could disrupt U.S. auto production, drive up consumer prices, limit vehicle options, and lead to job losses across the supply chain.
Tesla’s warning is particularly noteworthy given CEO Elon Musk’s close ties to Trump. Musk, who leads the White House’s Department of Government Efficiency, has played a key role in the administration’s efforts to downsize the federal government. Despite this, Tesla is urging caution, stressing that even with efforts to localise supply chains, some auto parts and components remain difficult or impossible to source within the US.
Trump is expected to decide on new tariffs for vehicles and auto parts as early as April. In its letter, Tesla advocated for a “phased approach” that would give companies time to adjust supply chains and ensure compliance with new trade regulations.Trade concerns extend beyond Tesla, with Autos Drive America—representing major foreign automakers such as Toyota, Volkswagen, BMW, Honda, and Hyundai—also cautioning against broad-based tariffs. The group warned that such measures could disrupt U.S. auto production, drive up consumer prices, limit vehicle options, and lead to job losses across the supply chain.
Stock markets have already responded to the uncertainty. Tesla’s shares closed at $240.68, down 2.99% on Thursday, though pre-market trading showed a modest recovery, with shares rising 1.41% to $244.07.
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